Investigation finds local attorney mishandled client funds

From staff reports

Published: Wednesday, February 27, 2013 at 6:30 p.m.

Last Modified: Wednesday, February 27, 2013 at 6:30 p.m.

A preliminary investigation by the State Bar has found that Hendersonville attorney Alexander Veazey III mishandled client funds that were deposited into his trust account, according to a consent order of preliminary injunction filed in Wake County on Jan. 31.

On Jan. 18, the State Bar placed Veazey on disability inactive status for an indefinite period after a Henderson County judge found him to be “mentally ill and a danger to himself and others.”

According to the documents, Veazey was involuntarily committed to a psychiatric unit in January.

The State Bar will examine his trust and operating accounts, and Veazey was ordered to submit his financial records as well as documents such as client files, billing statements, memoranda and receipts.

According to the consent order, Veazey is not allowed to accept funds from clients or third parties, or withdraw funds or write any checks against any account in which client or fiduciary funds have been deposited.

Veazey is also not allowed to serve as an attorney-in-fact, trustee, escrow agent, executor or personal representative.

The State Bar has not filed a complaint seeking professional disciplinary action, and the grievance committee has not filed any complaints.

<p>A preliminary investigation by the State Bar has found that Hendersonville attorney Alexander Veazey III mishandled client funds that were deposited into his trust account, according to a consent order of preliminary injunction filed in Wake County on Jan. 31. </p><p>On Jan. 18, the State Bar placed Veazey on disability inactive status for an indefinite period after a Henderson County judge found him to be “mentally ill and a danger to himself and others.” </p><p>According to the documents, Veazey was involuntarily committed to a psychiatric unit in January.</p><p>The State Bar will examine his trust and operating accounts, and Veazey was ordered to submit his financial records as well as documents such as client files, billing statements, memoranda and receipts.</p><p>According to the consent order, Veazey is not allowed to accept funds from clients or third parties, or withdraw funds or write any checks against any account in which client or fiduciary funds have been deposited.</p><p>Veazey is also not allowed to serve as an attorney-in-fact, trustee, escrow agent, executor or personal representative. </p><p>The State Bar has not filed a complaint seeking professional disciplinary action, and the grievance committee has not filed any complaints. </p><p>Veazey was licensed to practice law in North Carolina in 1978.</p>